The oOh!Media Ltd (ASX: OML) share price has surged 5.75% higher to $1.84 this morning, on the release if its business and 2020 financial year trading update.
After a horror first 3 months of the year, which saw oOh!Media’s share price crash by 81% between January and 30 March as coronavirus lockdowns saw demand for its outdoor advertising business dry up, the company has been steadily regaining ground.
Since the 30 March lows, the share price is up 200%. Year-to-date, shares remain down 42%. By comparison the S&P/ASX 200 Index (ASX: XJO) is up 2%.
What does oOh!Media do?
oOh!Media Ltd specialises in outdoor and public venue advertising and communications. The company operates in Australia and New Zealand. oOh!Media boasts an extensive network of ore than 37,000 digital and static advertising locations spanning road, rail, airports, retail centres, universities and office towers. The company owns digital media brands Junkee and Punkee as well as printing business, Cactus.
oOh!Media shares first began trading on the ASX in 2014.
What did oOh!Media report to send its shares higher?
In this morning’s trading update to the ASX, oOh!Media reported a strong recovery in its key Out of home’ audiences since the COVID-19 lockdowns have lifted. It stated that performance has been heading back towards 2019 levels in its biggest revenue and audience reach formats: Road, retail and street furniture.
On the back of rebounding revenues in the fourth quarter, the company is forecasting FY20 revenues of $420–430 million.
Having cut more than $15 million from its operating costs in the financial year, without including the JobKeeper savings, net debt is expected to in the range of $120–130 million as at 31 December.
oOh!Media reported its third quarter revenues were 43% lower than Q3 2019, while it expects its fourth quarter revenues to be 28–34% lower than the same quarter last year.
Commenting on the company’s continuing recovery from the pandemic slowdown, oOh! CEO Brendon Cook, said:
As the market leader in Out of Home across Australia and New Zealand, oOh! is well positioned to leverage the ongoing recovery in audience growth and advertiser sentiment which is becoming increasingly evident.
While Out of Home was clearly the most impacted media during the COVID-19 period from March to September, it is rebounding strongly. Our strategy remains focused on capitalising on the positive key structural drivers of growth in Out of Home and leveraging our diverse product portfolio, backed by data, to deliver results for advertisers.
We are proud of the role we have played during COVID-19, with our assets used to convey public health messaging across the country, helping keep Australians informed.
As travel restrictions continue to ease, the oOh!Media share price will be one to keep an eye on.